Logistics partnerships help keep product competitive

In just three years Marius Louw, managing director of Du Toitskloof Wines, has managed to establish the brand internationally. And he’s set on growing exports in the coming years. “If you don’t revisit your business plan frequently and adjust it to the changing environment, it will all catch up with you sooner than you think – and you will find that your product is no longer relevant out there,” he says. With a strong agricultural background, Louw has been involved in the wine industry from a banking point of view for years. “I only recently ventured into the exporting side of things and so far it is going well. We place a lot of emphasis on making sure we are offering our target market an affordable product regardless of where they are in the world.” And to do that, he says, one needs to have some key elements in place. “It obviously starts with the product – you have to trust it but at the same time you must build the brand and market it, making sure customers go back to the shelf to buy it time and time again,” he says. “Secondly, you need to make sure it is on the shelf at the right price. There is no under-estimating pricing, and if you are giving the market something that is too expensive, it is just not going to move and you will not be a viable option any more.” Thirdly, says Louw, creating an efficient supply chain is crucial for success. “From having clearing agents who are on top of their game to reliable transporters, you have to build a partnership with each of your service providers, making sure they are working for your benefit and are meeting your requirements all the time.” Louw believes that in view of South Africa’s depressed traditional markets, there is much to be said for the development of new markets. “It is part of revisiting that business model. One has to look at new markets for one’s product – be it in Africa or the Far East. It does not have to be the traditional markets that one has always serviced. Also, finding ways of delivering a more cost-effective product will pay off in the long run.” CAPTION TheTetra pack is a cheaper and greener packaging alternative for wine.